Two Things Retailers May Not Realize About Digital Product Passports
Megan Brewster, VP of advanced technology, discusses two of the most important factors for retailers preparing for Digital Product Passports.
I recently joined the Customerland podcast with host Mike Giambattista to talk Digital Product Passports, what they mean for retailers, and two important factors retailers should consider when it comes to implementing RAIN RFID or other technologies as potential DPP data carriers.
For the uninitiated, the European Union is driving a first-of-its-kind regulatory framework called the Digital Product Passport (DPP) to create transparency around product information and accelerate the transition to a circular economy.
The regulations will require that most products sold in the EU include an attached identifier so consumers can access detailed information about materials used, manufacturing processes, and recyclability. This is great news for the environment, but DPPs pose new challenges for retailers, suppliers, distributors, and other affected businesses. And, as our most recent supply chain integrity data revealed, almost half of retail supply chain leaders surveyed were concerned about their organization’s ability to meet DPP requirements.
Two things about DPP every retailer should know
First, even though DPP originates in Europe, anyone selling into the European market in the target product categories will be impacted. While the U.S. regulatory environment may shift with administration changes, businesses must take a long view and recognize that what happens in the EU often makes its way to the U.S. Plus, consumers’ passion and commitment to sustainability is likely to only deepen over time. So, if retailers are already investing in DPP compliance for the EU market, then it makes sense to plan for similar regulations in every market.
Second, when considering potential data carriers, whether it’s RAIN RFID or something else, retailers should ensure their operations and technical teams are working closely with sustainability teams. A technical solution like RAIN — which streamlines internal operations, delivers supply chain efficiency, and reduces shrink — is additionally an amazing option for driving sustainability. But, any IoT solution requires close collaboration among internal groups to ensure it serves everyone’s objectives in an organization.
[Get the latest Digital Product Passport resources from Impinj and subscribe to receive Digital Product Passport updates.]
Go beyond Digital Product Passports with RAIN RFID
Though the European Union is still finalizing approved DPP data carriers, RAIN presents a significant opportunity for retailers to not only comply with DPP legislation but also gain significant operational benefits. After implementing RAIN, retailers see 25-30% increases in inventory accuracy, 50% reductions in out-of-stocks, up to 80% improvements in shipping and picking accuracy, and cycle count times up to 25 times faster.
Sustainability initiatives aren’t going anywhere. Consumers have made it clear that sustainability is something they care about deeply. Environmental impact, supply chain efficiency, product durability, and retailer reputation are all interconnected and all impact the bottom line. And retailers can prepare for DPP regulations now with RAIN while also gaining benefits for their own organizations.
Visit Customerland to listen to my full interview, and sign up to our DPP newsletter to get the latest updates from Impinj.
- Article tagged as:
Monday, January 6, 2025
ABOUT THE AUTHOR
Megan Brewster
Vice President, Advanced Technology
Megan Brewster works to bring clarity and strategy to far-off points on Impinj’s roadmap and grow the emergent market through technology and standards.
Sign Up for the latest news